Digital Logistics Market Research Report - Forecast to 2027

Digital Logistics Market Research Report – By Component (System, Services), Applications (Warehouse Management, Labor Management, Transportation Management), Verticals (Healthcare, Automotive, Manufacturing), by Regions - Forecast Till 2027

ID: MRFR/ICT/4375-HCR | December 2022 | Region: Global | 100 Pages         

Digital Logistics Market

Digital Logistics Market is Predicted to Reach US$ 22172 Million by 2027 Registering a CAGR of 11.4%

Segmentation

By Component System Services
By Applications Warehouse Management Labor Management Transportation Management
By Verticals Healthcare Automotive Manufacturing

Key Players

  • Tech Mahindra (India)
  • SAP SE (Germany)
  • Oracle Corporation (U.S.)
  • Samsung Group (South Korea)
  • HCL Technologies Limited (India)
  • Advantech Co. (Taiwan)
  • International Business Machines Corporation (U.S.)
  • Huawei Technologies Co. Ltd. (China)
  • JDA Software Group Inc. (U.S.)
  • Hexaware Technologies (India)

Drivers

  • Online shoppers anticipate accurate orders
  • quick shipping
  • and return policies
  • New models and technologies must be developing
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Digital Logistics Market Overview:


According to the latest research report, the digital logistics market size would reach a significant market worth of USD 19 billion by the end of the year 2023. Over the period of study of 2017 to 2023, the worldwide digital logistics industry is expected to develop at a staggering 11 percent compound annual growth rate (CAGR). The vast number of data and enhanced logistics processes are the primary reasons driving the development of the digital logistics industry, which are both contributing significantly to the market's expansion.


The term "digital logistics" refers to a procedure in which computer software is used to make a logistic operation more intelligent. The growing need for digital technologies is fueling the expansion of the digital logistics sector. Koopman Logistics Group, a subsidiary of International Business Machines Corporation, entered formed a collaboration with the company on April 7, 2018, with the express purpose of delivering distribution network digitalization services to its clients. The digital logistics demand is anticipated to gain steam in the next years, thanks to the expansion of the e-Commerce industry. Digital logistics market growth in the e-Commerce industry, since it streamlines the logistics and distribution activities of the companies involved.


This report contains all the information on the digital logistics market analysis and its strengths. The report also contains the culmination of dynamics, segmentation, key players, regional analysis, and other important factors. 


Covid 19 Analysis:
The onset of the COVID-19 virus has impacted the retail sector that provides more to industrial prosperity. The commerce, culinary, and travel businesses are suffering enormous cash flow strain owing to decreased revenues and rising fixed expenditures. The procurement and supply chain firms are under strain owing to the greater focus of the central government on the ongoing supply of primary commodities and medical supplies. Thus, the logistical networks are seeing unexpected and significant losses from the interruption produced by the COVID-19 infection.


Market Dynamic:
Drivers:
Expansion in online purchasing and Web users has fuelled the e-commerce company's phenomenal growth over the last decade. Increasing e-commerce activity necessitates speedier and more effective transportation suppliers. Online shoppers anticipate accurate orders, quick shipping, and return policies. Industries are trying for methods to cut order shipping times and expenses. Visibility, price, simplicity, and speed of delivery are all driven by e-commerce, as are seamless returns. To meet this need, new models and technologies must be developed through digitalizing logistics processes, automation material movement, logistics planning, and distribution channels. This has resulted in speedier and more diversified fulfillment services, notably for last-mile delivery and refunds.


Opportunities:
In recent years, self-driving cars have gained relevance in the logistics business, since they are being accepted in regulated areas like warehouses and yards. Self-driving cars in common and public locations like roads and busy streets can assist streamline logistical operations and boost safety. The expanding use of AI and hefty expenditures in sensor and visual technology may enable self-driving cars to revolutionize how they are built, used, and maintained.


Restraints:
The administration is one of the biggest impediments to the broad implementation of online logistics. Due to industry heterogeneity, a transportation IoT standard is required. Globally, transportation companies are focusing on increasing logistics operations to remain profitable. Possessing one agency per field could cause confusion, hence standardizing governance is required. Nevertheless, maximum efficiency will lead to improved linked devices and platforms. Connectivity protocols like EtherCAT, MTConnect, and MCS-DCS Interface Standardization facilitate data exchange between domains and sectors. A universal standard in supply chain management would allow service providers to provide a range of approaches in one bundle.


Challenges:
The digitization of logistics operations necessitates large capital expenditures for industrial automation, technology, and services. Replacing current systems is expensive. The delayed adoption of many IoT platforms, interfaces, and APIs is yet another issue impeding the development of digital supply chain management. The implementation of online logistics solutions is slowing due to enterprises' aversion to investing much in a digitalized system. Most businesses are hesitant to accept new digital technology and depend entirely instead of data to make business choices. As a result, small businesses cannot afford automation technologies, limiting the expansion of a digital logistics market revenue.

Cumulative Growth Analysis:
Despite the fact that the Latin America area is likely to increase during the forecast timeframe, expansion has historically been sluggish in the area when contrasted to other parts of the globe, and it is anticipated to follow a similar pattern in the early part of the forecast timeframe. Several technical developments, including the Internet of Things (IoT), artificial intelligence (AI), and cloud computing, among many others, have come late in the areas in comparison to the pace of acceptance of similar technological developments in other areas.


Value Chain Analysis:
According to the reports, The worldwide digital logistics market is classified on the basis of components, verticals, applications, and geography. Components include software, hardware, and services. The component sector is further subdivided into two sub-segments, namely, services and systems.  The system is further subdivided into order management systems, database management systems, tracking and monitoring systems, information integrated systems, fleet management systems, and electronic data exchange systems, among other categories.


In addition, services are subdivided into two categories: consulting services and systems integration services. transportation management, Warehouse management, and labor management are the three sub-categories under which the apps are classified. Automotive, governmental, manufacturing, military, aerospace, retail, healthcare, and other verticals are among the categories divided into by the company. The market is segmented by geography, with North America, Europe, Asia Pacific, and the Rest of the World all being examined separately.


Digital Logistics Market Segmentation Overview:
The market is segmented on the basis of components, verticals, applications, and geography. The global digital logistics market trend is expected to witness decent growth during the forecast period.


By Application:
Based on the application, the market is segmented into transportation management, Warehouse management, and labor management.


By End-users:
Based on the propulsion types, the market is segmented into Automotive, governmental, manufacturing, military, aerospace, retail, healthcare, and other verticals.


Digital Logistics Market Regional Analysis:
According to the reports, North America, Asia Pacific, Europe, and the Rest of the World are among the areas in which the digital logistics market share is being studied, as are the other regions. Increased use of digital systems and technologies including radio frequency identification (RFID), electronic data exchange, and many others in North America is dominating the economy for digital transportation to record high levels of expansion. A growing number of people are becoming familiar with digital logistics in the European area, owing to the next wave of cloud services, which is fueling the market's expansion. As a consequence of the rise emergence of internet access in Asia Pacific countries such as China, Japan, and India, these countries consider developing markets for virtual logistics and are expected to expand at a rapid pace of compound annual growth rate (CAGR) over the next few years.


Competitive Landscape:
In part, this fragmentation is due to the fact that there are several companies that serve to a diverse range of enterprises in the Digital Logistics Market outlook.


Digital Logistics Market Major Key Players:


  • Tech Mahindra (India)

  • SAP SE (Germany)

  • Oracle Corporation (U.S.)

  • Samsung Group (South Korea)

  • HCL Technologies Limited  (India)

  • Advantech Co. (Taiwan)

  • International Business Machines Corporation (U.S.)

  • Huawei Technologies Co., Ltd. (China)

  • JDA Software Group, Inc. (U.S.)

  • Hexaware Technologies (India)


Report Overview:
The following report comprises of –


  • Market overview

  • Covid 19 Analysis

  • Market Dynamic

  • Drivers

  • Opportunities

  • Restraints

  • Challenges

  • Cumulative Growth Analysis

  • Value Chain Analysis

  • Segmentation Overview

  • By Application

  • By End-Users

  • Regional Analysis

  • Competitive landscape


Recent Developments:
ORBCOMM Inc, a global provider of Internet of Things (IoT) solutions, will launch its next-generation data analysis and reflect all available information in July 2020. The platform will include additional functionality such as sophisticated data insights as well as vibrant user interaction and will provide customers with the unique, coherent framework of all their mass transit asset types through the use of a single sign-on.


Based on Components:


Solution:


  • Asset Management

  • Warehouse Management

  • Data Management and Analytics

  • Security

  • Network Management


Services:


  • Planning and Consulting Services

  • Deployment and Integration Services

  • Support and Maintenance


Based on Function:



  • Warehouse Management

  • Transportation Management

  • Workforce Management


Based on Organization Size:



  • Large Enterprises

  • SMEs


Based on Deployment Mode:



  • Cloud

  • On-premises


Based on Vertical:



  • Retail and eCommerce

  • Manufacturing

  • Pharmaceuticals and healthcare

  • Aerospace and Defense

  • Automotive

  • Energy and Utilities

  • Others (includes IT, telecom and chemicals)


Based on Regions:


North America:


  • United States (US)


Europe:


  • United Kingdom (UK)

  • Germany


APAC:


  • China

  • Japan


MEA:
Latin America:



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 22172 Million
  CAGR   11.4%
  Base Year   2020
  Forecast Period   2021–2027
  Historical Data   2019
  Forecast Units   2021–2027
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Component
  Geographies Covered   North America, Europe, Asia-Pacific
  Key Vendors   Tech Mahindra (India) SAP SE (Germany) Oracle Corporation (U.S.) Samsung Group (South Korea) HCL Technologies Limited (India) Advantech Co. (Taiwan) International Business Machines Corporation (U.S.) Huawei Technologies Co. Ltd. (China) JDA Software Group Inc. (U.S.) Hexaware Technologies (India)
  Key Market Opportunities   Self-driving cars in common and public locations like roads and busy streets can assist streamline logistical operations and boost safety.
  Key Market Drivers   Expansion in online purchasing and Web users has fuelled the e-commerce company's phenomenal growth over the last decade.


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Frequently Asked Questions (FAQ) :

The digital logistics market is expected to reach a signficant market value of USD 19 billion by 2023.

The global digital logistics market is maturing at a whopping 11% CAGR over the review period of 2020 to 2027.

A few significant players of the global digital logistics market are Huawei Technologies Co., Ltd. (China), JDA Software Group, Inc. (U.S.), Hexaware Technologies (India) among others.

The services segment is expected to drive market growth over the review period.

The manufacturing segment is likely to witness the highest demand in the digital logistics market.